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UAE, Turkey are getting a USD 700 mn subsea-and-terrestrial fibre-optic connection

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WHAT WE’RE TRACKING TODAY

THIS MORNING: Nasdaq Dubai sukuk tops USD 100 bn + property cycle peak incoming?

Good morning, everyone. The UAE is extending its run of securing connectivity infrastructure with news of an Emirates-Iraq-Turkey tie-up spanning continents. We have the low-down on a new USD 300 mn fund coming to the UAE, as well as a story on Mubadala backing one of Egypt’s e-commerce players.

Plus: Fab just closed its third bond issuance this year, real estate and hospitality players have unveiled some big-ticket projects in Dubai and Abu Dhabi, the UAE is partnering with Turkey on rail cargo operations, and a new face will be leading the FTA.

Watch this space

REAL ESTATE — We’re in for a property cycle peak, and soon: The UAE’s real estate market is likely to peak in 1H 2026, with prices and rents in Dubai and Abu Dhabi still climbing — though at a slower pace — as lower rates, steady population growth, and sustained business-friendly reform momentum extend the upcycle, according to Markaz’s latest UAE Real Estate Report (pdf). Its macro index score rose to 4.3, putting the market in “peak, slowdown ahead” territory.

The reasoning: The current phase is supported by strong fundamentals, making it less likely that the market is heading for a sharp correction, but a cooling off of prices in the medium term is expected, Markaz said. Markaz cited 5.0% projected real GDP growth in 2026, inflation holding at around 1.6%, CBUAE rate cuts, and continued demand from high-net-worth buyers.

The backdrop: In 9M 2025, the total value of Dubai real estate transactions rose 28.3% y-o-y to AED 554.1 bn, with off-plan sales making up 75% of that total, according to Markaz. Meanwhile, Abu Dhabi transaction value jumped 75.8% to AED 58 bn, with transaction volume up 42.3%. Dubai rental yields remain globally competitive at around 7.5%, even as rental growth begins to cool.

We’ve flagged this before — Dubai’s growth is set to ease into single digits as new stock lands. Meanwhile, Abu Dhabi could hold firmer, with c.16.6k units in the pipeline this year but only about 6.5k likely to be delivered, limiting near-term supply pressure.

Data point

USD 100 bn+ — this is the total value of outstanding sukuk now listed on Nasdaq Dubai following a record 2025. The exchange saw USD 30.6 bn in new debt listings across 60 issuances last year, accounting for nearly USD 146.1 bn of the USD 150.9 bn in total outstanding debt securities across both DFM and Nasdaq Dubai.

How this stacks up: The exchange has hosted more than USD 245 bn in cumulative bonds and sukuk listings to date, including USD 177 bn in sukuk. Its sukuk book has expanded eightfold since 2013, rising from USD 12.6 bn to over USD 100 bn today.

PSA

Off-plan property EOIs now registered electronically in Abu Dhabi: Starting today, the Abu Dhabi Real Estate Centre is mandating the digital registration of all off-plan expressions of interest (EOIs) through its Madhmoun platform, according to a press release (pdf). Under the new framework, all EOI funds must be secured within government-managed preparatory escrow accounts. The move aims to eliminate traditional intermediary risk by using direct oversight to safeguard capital.

REMINDER- You’ll be driving through tolls for less in Ramadan: Dubai’s road toll operator Salik is lowering its toll charges during Ramadan’s iftar rush as part of the variable pricing strategy it implementedlastyear. Under the new pricing structure, the toll rate schedule from Monday through Saturday is as follows:

  • Peak hours (AED 6): 9am-5pm;
  • Offpeak hours (AED 4): 7am-9am and 5pm-2am;
  • Late night (no charge): 2am-7am.

On Sundays, the peak rate will be capped at AED 4 from 7am until 2am, with zero charges between 2am and 7am.

Happening today

A UAE delegation led by Abu Dhabi Crown Prince Khaled bin Mohamed bin Zayed Al Nahyan is in New Delhi for the India AI Impact Summit, which started yesterday and runs through Friday, 20 February, according to Abu Dhabi Media Office.

On the agenda: Discussions on global frameworks for AI governance, future strategic priorities for the technology, and mechanisms to strengthen public-private cooperation in support of Sustainable Development Goals. The program also features specialist sessions on emerging applications and global technology shifts, alongside an exhibition.

WEATHER- It looks like the brief reprieve from the unseasonably warm weather has ended quicker than it came, with temperatures rising again today to peak at 28°C in Dubai and 29°C in Abu Dhabi, before cooling to 17°C in Dubai and 18°C in the capital.

The big story abroad

It’s an oddly calm morning in the global press, with headlines continuing to follow the tech selloff. Technology stocks are seeing hundreds of bns in losses amid a reality check over exorbitant AI spending and murky earnings visibility, with investors pulling back from equities of Big Tech giants. Microsoft’s market value saw the biggest dip compared to its peers, shedding some 17% YTD. Amazon, Nvidia, and Apple also saw their market value slip over the past month and a half. Meanwhile, more conventional equities — like Samsung and Walmart — have seen growth in their market value over the same period.

For a deeper dive into the market’s responses to AI, check out this morning’s Planet Finance, below.

And in the latest sign that 2026 is just not the greenback’s year: Fund managers are morepessimistic about the USD than at any point in the last ten years, following its 1.3% drop against a basket of other currencies in 2026. Confidence in US assets is waning, and the currency is still vulnerable to further losses, experts at asset management players said.

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THE BIG STORY TODAY

Linking up with Turkey

UAE and Iraq partners to connect Gulf to Turkey: An Iraqi-Emirati consortium, including UAE-based Breeze Investments, Iraqi-Kurdish DIL Technologies, and Iraq-based Tech 964, is set to build WorldLink, a USD 700 mn subsea-and-terrestrial fibre-optic connection, Reuters reports. An ownership stake breakdown wasn’t specified.

The details: The cable will run from Fujairah to Turkey via Iraq’s Faw peninsula. Privately funded, the project is slated to be rolled out over five years and aims to reduce congestion and transit times compared to traditional routes running via Egypt’s Suez Canal.

Our take

The cable mirrors a wider logistics alignment between the three countries. The UAE, Iraq, and Turkey have been deepening their cooperation around Baghdad’s development road program, a USD 17 bn rail-and-road network intended to move goods from the Grand Faw Port to the Mediterranean via the Turkish border and onward to Europe. In April 2024, AD Ports signed a preliminary agreement with Iraq’s General Company for Ports to form a joint venture to develop and operate the Grand Faw port and its surrounding economic zone.

Why it matters: Securing and expanding infrastructure connectivity is vital for the UAE’s drive to become a hub for AI and data centers, which rely on this type of infrastructure. The Emirates is also looking to position itself as a regional traffic hub, using dense connectivity to support cross-border data flows as AI workloads scale and data-localization rules tighten. It also comes as other regional players have inked connectivity agreements, including one between Saudi Arabia and Syria for a USD 1 bn fiber optic network.

Background

To this end, the UAE has been thickening its subsea map. e& has recently integrated the 2Africa cable into its SmartHub facilities, plugging the 45-km network into domestic data center and hyperscaler demand.

Further additions are queued, including the 1.4k km Al Khaleej system linking Bahrain with the UAE and other GCC nations, targeted for 2Q 2026, and the 11k-km ICE IV route from Southeast Asia to the Gulf expected in 4Q 2027. Meanwhile, du has teamed up with Peace Cable International Network to land the Peace Gulf Extension in the UAE, building on a 275-km UAE-Oman fibre connection between Dubai, Barka, and Salalah.

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INVESTMENT WATCH

Yet another real estate investment fund

Dubai-based alternative investment and PE firm EightClouds launched a UAE-focused residential investment fund targeting USD 300 mn in commitments, according to a press release (pdf). The new vehicle will focus on residential assets across Dubai and the wider UAE, aiming to build gross asset value of USD 600 mn within 10 years.

The fund received around USD 15 mn in expressions of interest, which it expects to finalize at the first closing, Oliver Wall, the firm’s head of investments, tells EnterpriseAM. The fund saw particular interest from qualified investors from the GCC and the UK, as well as other international markets, he added.

Where will the money go? The portfolio will include long-term rental properties in established, “high-demand” communities targeting yields of 9% or more, along with yields above 18% on more short-term premium units. The firm aims to expand the fund’s portfolio to around 1k units across more than 15 in-demand areas.

Investors can expect plenty of returns: The fund will pay out 100% of available cashflow to investors through quarterly dividends and offer exposure to long-term capital gains, with investors receiving 80% of realized gains.

The firm is prioritizing residential assets, viewing the segment as the most sustainable in the short to medium-term amid surging demand for rental accommodation, Wall told us. An expected population uptick in the next two years, paired with sustained economic expansion and job creation, is underpinning pricing and absorption in the market, Wall said.

The fund is primarily focused on Dubai at launch, attracted by the emirate’s deep capital pools and interest from international investors — a market which saw some USD 149 bn in residential transaction volumes last year, the investment head noted. However, the mandate is open to UAE-wide investments where yield, liquidity, and governance standards align with the fund’s underwriting criteria.

In Dubai, the fund is focusing on assets near key amenities, Wall said. For long-term rentals, it is most bullish on Dubai South, where the expansion of Al Maktoum International Airport and favorable structural trends are expected to drive sustained demand and long-term value creation. For short-term lets, the fund is keen on Downtown Dubai, with the area seeing year-round tourism and consistent corporate demand.

Normalization coming? They’re brushing it off

EightClouds sees expected price normalization in Dubai’s residential market as a healthy correction that can improve market longevity after a period of strong appreciation, Wall said. Occupancy is forecast to remain around 85% until 2030, despite a roughly 400k-unit pipeline between 2026 and 2030, pointing to continued demand across core districts.

The present challenges: Key risks to Dubai’s residential market include timing mismatches in the delivery pipeline, slower demand growth versus supply, a downturn in available liquidity, and macroeconomic volatility, according to Wall. The fund mitigates these by focusing on resilient segments, targeting high-yield communities, and diversifying across more than 15 neighborhoods.

What’s next: The fund’s first close is expected on 30 March. Looking ahead, while residential remains EightCloud’s core focus, the firm is also exploring mixed-use assets that incorporate commercial elements, Wall noted.

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DEBT WATCH

Fab closes its third bond issuance this year

First Abu Dhabi Bank (Fab) raised GBP 450 mn from 5.5-year senior unsecured notes, marking its third issuance this year, Zawya reports. The bank tightened pricing to UKT +75 bps from initial price thoughts of +90 bps after books peaked above GBP 825 mn at launch, eventually settling north of GBP 775 mn.

The paper, rated Aa3/AA-/AA-, carries a 4.7% yield and will be listed on the London Stock Exchange under Fab’s USD 20 bn EMTN program.

REFRESHER- The lender earlier this month raised USD750 mn via a five-year Formosa at SOFR +75 bps following another USD 750 mn five-year benchmark in January, reinforcing investor appetite for high-grade Abu Dhabi risk.

ADVISORS- Barclays, Deutsche Bank, First Abu Dhabi Bank, Standard Chartered Bank, and TD Securities served as joint lead managers and bookrunners.

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INVESTMENT WATCH

Mubadala diversifies investment footprint in Egypt

Mubadala breaks its energy-only streak in Egypt with Breadfast backing: Mubadala was among several investors who took part in Egyptian e-commerce platform Breadfast’s USD 50 mn pre-Series C funding round, Breadfast’s co-founder and CEO Mostafa Amin told Bloomberg. Mubadala joined the round alongside SBI Investment, Olayan Financing Company, Y Combinator, the World Bank’s IFC, Novastar Ventures, 4DX Ventures, and the European Bank for Reconstruction and Development.

Where will the money go? The funds will be used to develop the firm’s infrastructure and business units, as well as potential expansion in other North and West African countries.

What’s next? The company is gunning for a bigger funding round in 1H 2026, with ongoing discussions currently taking place with growth investors for a Series C round. It also targets close to 3% of Egypt’s USD 100 bn grocery market in the next three years, with plans for a global IPO in the future.

About the company: Founded nine years ago as a fresh-bread delivery service by Mostafa Amin (LinkedIn), Muhammad Habib (LinkedIn), and Abdallah Nofal (LinkedIn), Breadfast developed into a platform offering groceries, ready meals, pharma products, a prepaid card, and other services. The company controls much of its supply chain, including private-label production, delivery, and its own coffee shops, with in-house brands accounting for about 40% of grocery sales.

Our take

This is a pivot for Mubadala, which has historically treated Egypt as an energy play. The sovereign entity was mainly interested in the North African country’s upstream gas and midstream infrastructure, including a 10 % stake in the Shorouk Concession (Zohr gas field), a 20% stake in the Nour North Sinai offshore concession, and a position in the SUMED oil pipeline, according to its website. By leading this round, the fund is signalling a move into Egypt’s consumer tech infrastructure.

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MOVES

New director general takes the helm of the Federal Tax Authority

UAE president names new FTA head: President Mohamed bin Zayed Al Nahyan issued a federal decree appointing Abdulaziz Mulla as director general of the Federal Tax Authority (FTA), with the rank of ministry undersecretary, state news agency Wam reports.

Al Mulla is a veteran financial leader with over two decades of experience in financial management, investment, and public fiscal policy reforms. His previous roles include managing director and CEO of the Dubai Investment Fund and executive director of the Dubai Financial Support Fund.

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ALSO ON OUR RADAR

Etihad Rail + Turkey’s Hareket partner on cargo, Equitativa + Premier Inn put pen to paper on AED 2 bn pipeline, Ohana launches its AED 15 bn project

Etihad Rail, Turkey’s Hareket to boost cargo movements in the Middle East

Etihad Rail partnered with Turkish heavy-lift specialist Hareket to handle oversized and complex cargo movements, according to a disclosure. The partnership aims to combine Hareket’s engineering and heavy-lifting expertise with the UAE’s 900-km national railway infrastructure.

Why it matters: For operators, moving heavy industrial equipment via rail is significantly more efficient and allows for higher capacity than road transport. For Hareket — which has already worked on Abu Dhabi’s Rahman Island Bridge project — partnering with the national carrier cements its position in a regional heavy-lift market that is increasingly focused on massive civil and energy infrastructure.

What’s next: Etihad Rail aims to transport 60 mn tons of cargo annually by 2030. The partnership could potentially lead to specialized rolling stock or dedicated heavy-lift hubs at rail terminals to accommodate the oversized equipment Hareket specializes in.

Equitativa, Premier Inn partner on AED 2 bn pipeline

Dubai-based Equitativa Real Estate partnered with Premier Inn Middle East on a AED 2 bn hospitality pipeline, according to a press release. The two sides inked an MoU to develop six to eight properties across the GCC to tap into the rising demand for mid-market offerings. The move will add 3.5k keys to Premier Inn’s regional portfolio, with Dubai, Abu Dhabi, and Ras Al Khaimah cited as key locations, alongside Riyadh and Jeddah.

Ohana Development launches AED 15 bn project

UAE-based Ohana Development launched a Manchester City-branded waterfront community on Yas Island, valued at AED 15 bn, according to a press release. The 1.7 mn sqm gated community along the Yas Canal will offer over 2k units, including villas, penthouses, and apartments, alongside a Manchester City Academy, hotel, marina club, retail promenade, and resort-style amenities. Completion is scheduled for 2029.

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PLANET FINANCE

Markets caught between AI hype and AI fear

Wall Street is wrestling with two competing fears about AI — and both are weighing on markets. Investors are selling companies they believe could be displaced by AI while simultaneously doubting that the hundreds of bns of USD big tech is pouring into the technology will generate meaningful returns anytime soon, Bloomberg reports. But Nomura International Wealth Management CIO Julia Wang argues that these two contradicting fears “can’t be true at the same time.”

The first fear is straightforward: AI may wipe out swaths of corporate America. Each new product launch from AI firms has triggered waves of selling in sectors ranging from wealth management and ins. brokering to software, logistics, and juridical services. Investors are scrambling to reassess which business models are at risk. Every new AI tool is being treated as another piece of evidence that change might arrive faster — and hit harder — than expected.

Investors’ second fear is that AI’s biggest champions are overspending without offering a clear timeline for returns. Microsoft, Amazon, Meta, and Alphabet are expected to spend more than USD 600 bn in capital expenditures in 2026 alone, reshaping their cashflow profiles. Microsoft and Meta have each lost 16% of their market value since 28 January, while Alphabet — widely seen as the frontrunner in the AI race — is trading 11% below its recent peak.

What has shifted is the market’s patience. For years, investors accepted that hyperscalers could spend heavily today to dominate tomorrow. Now, they are demanding clarity on when and how that payoff will materialize. “Investors were comfortable saying, ‘so long as it happens in the future, I’m comfortable with Microsoft or Amazon or Alphabet spending the money.’ Now they want to know more immediately when the payback will come — and we don’t have a clear picture,” Ameriprise Advisor Services’ Anthony Saglimbene said.

The consequences of that spending are already rippling through the real economy. Data center construction is tightening supplies of key components like memory chips, creating knock-on pressures across electronics, automotive, and telecom supply chains. “What is ahead of us between now and the end of this decade, in terms of demand, is bigger than anything we’ve seen in the past, and, in fact, will overwhelm all other sources of demand,” Lam Research Corp’s CEO Tim Archer told Bloomberg in a separate report.

And investors are raising questions about hyperscaler balance sheets. “This level of capex will consume almost 100% of hyperscalers’ cashflow from operations compared with a 10-year average of 40%,” wrote UBS Wealth Management’s Ulrike Hoffmann-Burchardi in a note to clients. “That spending is now increasingly being funded by external debt or equity financing,” she added.

Until investors can reconcile those competing narratives — that AI is both transformative and potentially overhyped — markets are likely to remain unsettled. “When the market finally feels these companies aren’t going out of business, it will realize AI is a tool that can lead to greater profitability,” said Saglimbene. “But we’re going to be in a period of volatility for the foreseeable future,” he added.

MARKETS THIS MORNING-

A lot of the Asia-Pacific markets we follow are closed today for the Lunar New Year. Of the few that are open, Japan’s Nikkei is in the red as investors continue to react to the country’s softer-than-expected 4Q 2025 growth.

ADX

10,623

-0.1% (YTD: +6.3%)

DFM

6,702

-0.4% (YTD: +10.8%)

Nasdaq Dubai UAE20

5,533

-0.2% (YTD: +13.2%)

USD : AED CBUAE

Buy 3.67

Sell 3.67

EIBOR

3.5% o/n

3.7% 1 yr

TASI

11,184

-0.4% (YTD: +6.6%)

EGX30

51,494

-1.6% (YTD: +23.1%)

S&P 500

6,836

+0.1% (YTD: -0.1%)

FTSE 100

10,474

+0.3% (YTD: +5.5%)

Euro Stoxx 50

5,979

-0.1% (YTD: +3.2%)

Brent crude

USD 68.59

+1.2%

Natural gas (Nymex)

USD 3.24

+0.8%

Gold

USD 5,046

+2.0%

BTC

USD 68,791

-0.2% (YTD: -21.5%)

Chimera JP Morgan UAE Bond UCITS ETF

AED 3.75

+0.5% (YTD: 0.0%)

S&P MENA Bond & Sukuk

153.28

+0.3% (YTD: +0.9%)

VIX (Volatility Index)

21.20

+2.9% (YTD: +41.8%)

THE CLOSING BELL-

The ADX fell 0.1% yesterday on turnover of AED 940.9 mn. The index is up 6.3% YTD.

In the green: Ins. House (+14.9%), Sharjah Cement and Industrial Development Co. (+14.1%), and Hayah Ins. Company (+7.7%).

In the red: Abu Dhabi National Takaful Co. (-9.9%), E7 Group Warrants (-9.2%), and Gulf Medical Projects Company (-5.4%).

Over on the DFM, the index fell 0.4% on turnover of AED 729.4 mn. Meanwhile, Nasdaq Dubai was down 0.2%.

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ON YOUR WAY OUT

Up, up and away

One giant leap for the UAE? Abu Dhabi’s Technology Innovation Institute (TII) launched the UAE’s first sounding rocket powered by a locally-designed, built, and operated hybrid propulsion system, according to a statement. The successful test — marking a major step toward sovereign launch capability — saw the rocket reach a 3 km altitude before a recovery descent.

Why it matters: Rocket propulsion has historically been sourced abroad, while the TII’s hybrid engine was developed entirely in the UAE, including injectors, tanks, avionics, and control systems. Sounding rockets are primarily used for research to collect atmospheric data and are sometimes employed to test components before their integration into larger systems, like satellites.

The launch fits into a wider space localization drive: As we’ve covered, the UAE has invested AED 44 bn in the space sector as of October 2025. It also approved a National Space Industries Program aimed at doubling the number of space companies and exports within five years, targeting a top-10 global space hub ranking by 2031. Recent milestones include the creation of Eshara to localize ground-segment infrastructure and the launch of the country’s first sovereign earth-observation hub, aimed at bringing space assets and the systems behind them in-house.


FEBRUARY

Signposted to happen sometime this month: Investopia, Lagos, Nigeria.

17-19 February (Tuesday-Thursday): First day of Ramadan.

MARCH

31 March – 2 April (Tuesday-Thursday): Arab Media Summit, Dubai.

26-28 March (Thursday-Saturday): Social Capital Conference, Dubai.

28-29 March (Saturday-Sunday): Emirates International Congress on AI & Visionary Leadership in Transforming Healthcare, Adnec Center Abu Dhabi.

30 March – 2 April (Monday-Thursday): IAAPA Middle East Exhibition and Conference, Adnec Center, Abu Dhabi.

31 March-2 April (Tuesday-Thursday): Investopia 2026, Abu Dhabi.

APRIL

7-9 April (Tuesday-Thursday): Future Health Summit, Adnec Center Abu Dhabi.

13-15 April (Monday-Wednesday): AIM Congress, Dubai World Trade Center.

13-15 April (Monday-Wednesday): The International Glass Manufacturing Show, Dubai.

14-16 April: (Tuesday-Thursday): the International Property Show, Sheikh Zayed Rd, Dubai.

21-23 April (Tuesday-Thursday): UITP Public Transport Summit, Dubai.

MAY

4-8 May (Wednesday-Saturday): Make It in the Emirates, Adnec Center, Abu Dhabi.

11-15 May (Monday-Friday): Dubai Future Finance Week, Dubai.

11-13 May (Monday-Wednesday): AI Everything Global, Adnec Center, Abu Dhabi.

12-14 May (Tuesday-Thursday): Airport Show, Dubai World Trade Center, Dubai.

19-20 May (Tuesday-Wednesday): Capital Market Summit, Madinat Jumeirah, Dubai.

19-22 May (Tuesday-Friday): Abu Dhabi Water and Energy Week, Adnec Center, Abu Dhabi.

JUNE

3-4 June (Wednesday-Thursday): Annual MENA Investor Conference, Ritz-Carlton DIFC, Dubai.

15 June – 15 September (Monday-Thursday): Dubai Mallathon, Dubai.

JULY

31 July (Friday): Large businesses achieving annual revenues equal to or above AED 50 mn must appoint an accredited service provider for e-invoicing implementation.

Signposted to happen sometime in October 2026:

  • Abu Dhabi Space Week, Abu Dhabi.

NOVEMBER

9-10 November (Monday-Tuesday): Annual government meetings, Abu Dhabi.

OCTOBER

4-10 October (Sunday-Saturday): World Space Week, Abu Dhabi.

DECEMBER

2-4 December (Wednesday-Friday): UN Water Conference, UAE.

Signposted to happen in 2026:

Signposted to happen sometime in 2027:

  • 1-3 February (Monday-Wednesday): World Governments Summit.
  • 31 March: Small businesses with annual revenues of less than AED 50 mn are obliged to contract with an accredited service provider for e-invoicing implementation;
  • 31 March: Government entities are required to appoint an accredited service provider for e-invoicing implementation;
  • 1 July: Deadline for small businesses to implement e-invoicing;
  • 1 October: Deadline for governments to implement e-invoicing;
  • Abu Dhabi’s solar and battery energy facility, combining 5.2 GW of solar capacity and 19 GWh of battery storage, is set for commissioning.

Signposted to happen sometime in 2029:

  • Sibos 2029 organized by the Society for Worldwide Interbank Financial Telecommunication (SWIFT), Dubai;
  • The commissioning of the seventh phase of Mohammed bin Rashid Al Maktoum Solar Park.
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